Bitcoin is up nearly 4 percent and the key $7,000 zone of resistance against the US dollar has broken. BTC price is likely to rise to $8,000 if it clears the resistance zone of $7,280-$7,300.
Bitcoin remained a solid bid, and a fresh increase of over $7,000 against the US Dollar started. The bears had failed to push the price below the support zone of $6,750-$6,800.
On the BTC / USD pair’s hourly chart (data feed from Kraken), there was a break above a major bearish trend line with resistance near $7,035. If it successfully clears the $7,280-$7,300 hurdle, the pair is likely to accelerate towards the $8,000 level.
Bitcoin Show Signs of Bullish
Yesterday bitcoin bears made a few attempts against the US dollar to push the price down further below $6,800. They failed and this resulted in a bullish reaction in BTC above the resistance levels of $6,950 and $7,000.
The price even settled above the moving average of $7,000 and 100 hourly simples. There was a clear break above the las key decline of 50 percent. And Fib retracement level from the high $7,295 to the low $6,760.
More importantly, the BTC / USD pair’s hourly chart contained a break above a major bearish trend line with resistance close to $7,035. The pair now trades above the level of $7,100 and approaches the resistance of $7,200.
It appears that the las key decline of the 76.4 percent Fib retracement level from the high $7,295 to $6,760 swing low acts as a resistance. The principal upside resistance is near the region of $7,280-$7,300.
If Bitcoin succeeds in clearing the $7,280-$7,300 hurdles, a sharp upward move could occur. An initial resistance is close to the level of $7,500. Above which bulls are likely to target a test of the $8,000 handle in the sessions ahead.
Resistance to support
If bitcoin starts a downside correction, it might revisit the $7,030 and $7,000 support levels. In addition, the 100-hour simple moving average is also close to the $7,030 level to act as a strong purchase zone.
Any additional losses below $7,000 and a 100-hour SMA could negate the current bullish view. In that case, the price might revisit the $6,760 low swing in the near term.